MICHIGAN REAL ESTATE SALESPERSON EXAM PRACTICE
QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION LATEST 2025-2026
1. The Michigan Department of Licensing and Regulatory Affairs (LARA) oversees:
A. Tax collection
B. Real estate licensing and regulation
C. Mortgage lending
D. Property appraisal
Answer: B
Rationale: LARA regulates real estate licensing and practice in Michigan.
2. A real estate salesperson in Michigan must be employed by a:
A. Lawyer
B. Licensed broker
C. Appraiser
D. Lender
Answer: B
Rationale: Salespersons must work under a broker.
3. Real property includes:
A. Vehicles
B. Land and permanently attached improvements
C. Furniture
D. Cash
Answer: B
Rationale: Real property is land and fixtures.
4. Personal property is also called:
A. Fixtures
B. Chattels
C. Estates
,D. Titles
Answer: B
Rationale: Movable property is chattel.
5. A fixture is:
A. Movable object
B. Permanently attached item
C. Loan document
D. Lease agreement
Answer: B
Rationale: Becomes part of real property when attached.
6. The Statute of Frauds requires:
A. Oral agreements
B. Written real estate contracts
C. Verbal leases
D. Informal agreements
Answer: B
Rationale: Real estate contracts must be in writing.
7. Fiduciary duty includes:
A. Loyalty
B. Advertising
C. Lending
D. Tax filing
Answer: A
Rationale: Loyalty is a core fiduciary duty.
8. Which is NOT a fiduciary duty?
A. Confidentiality
B. Accounting
C. Marketing
, D. Obedience
Answer: C
Rationale: Marketing is not a fiduciary duty.
9. Fair Housing Act prohibits discrimination based on:
A. Income
B. Protected classes
C. Job title
D. Education
Answer: B
Rationale: Race, color, religion, sex, etc. are protected classes.
10. Steering is:
A. Legal advice
B. Directing clients based on protected class
C. Appraisal
D. Loan processing
Answer: B
Rationale: Illegal discriminatory practice.
11. Blockbusting is:
A. Renovation
B. Inducing panic selling based on demographics
C. Inspection
D. Financing
Answer: B
Rationale: Illegal fear-based inducement.
12. A deed is used to:
A. Rent property
B. Transfer ownership
C. Inspect property
QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION LATEST 2025-2026
1. The Michigan Department of Licensing and Regulatory Affairs (LARA) oversees:
A. Tax collection
B. Real estate licensing and regulation
C. Mortgage lending
D. Property appraisal
Answer: B
Rationale: LARA regulates real estate licensing and practice in Michigan.
2. A real estate salesperson in Michigan must be employed by a:
A. Lawyer
B. Licensed broker
C. Appraiser
D. Lender
Answer: B
Rationale: Salespersons must work under a broker.
3. Real property includes:
A. Vehicles
B. Land and permanently attached improvements
C. Furniture
D. Cash
Answer: B
Rationale: Real property is land and fixtures.
4. Personal property is also called:
A. Fixtures
B. Chattels
C. Estates
,D. Titles
Answer: B
Rationale: Movable property is chattel.
5. A fixture is:
A. Movable object
B. Permanently attached item
C. Loan document
D. Lease agreement
Answer: B
Rationale: Becomes part of real property when attached.
6. The Statute of Frauds requires:
A. Oral agreements
B. Written real estate contracts
C. Verbal leases
D. Informal agreements
Answer: B
Rationale: Real estate contracts must be in writing.
7. Fiduciary duty includes:
A. Loyalty
B. Advertising
C. Lending
D. Tax filing
Answer: A
Rationale: Loyalty is a core fiduciary duty.
8. Which is NOT a fiduciary duty?
A. Confidentiality
B. Accounting
C. Marketing
, D. Obedience
Answer: C
Rationale: Marketing is not a fiduciary duty.
9. Fair Housing Act prohibits discrimination based on:
A. Income
B. Protected classes
C. Job title
D. Education
Answer: B
Rationale: Race, color, religion, sex, etc. are protected classes.
10. Steering is:
A. Legal advice
B. Directing clients based on protected class
C. Appraisal
D. Loan processing
Answer: B
Rationale: Illegal discriminatory practice.
11. Blockbusting is:
A. Renovation
B. Inducing panic selling based on demographics
C. Inspection
D. Financing
Answer: B
Rationale: Illegal fear-based inducement.
12. A deed is used to:
A. Rent property
B. Transfer ownership
C. Inspect property
